Email Dave Email
Residential Real Estate
Oct 5, 2015

Five Topics To Consider Before Purchasing A Condo

Sponsored Content provided by Dave Sweyer - Owner and Broker, Sweyer Property Management

Buying a condominium or a townhome can be a great way to start investing in real estate. The cost is relatively low compared to purchasing a single family home, and many of the neighborhoods where condos and townhomes are located have a variety of amenities, from pools and spas to fitness centers and tennis courts.

Amenities will often enhance a property’s appeal to potential renters. Of course they can also increase a property’s resale value, but what gave me pause as I spoke with a client recently was the idea that amenities can also reduce a property’s value if they are in bad condition.

This leads to a larger idea – that many issues are specific to purchasing a condominium or townhome. To help others achieve their goals, whether buying a condo as an investment or a primary residence, I wanted to share five things to consider before making a purchase:

  • Monthly association fees. Find out what the monthly fee covers. In most cases the fee pays for things like common area maintenance, insurance, amenities and management. These can vary greatly, especially according to the type of amenities that are present.
  • Amenities. Are there any amenities where the property is located? Are they in a state of disrepair? If so, the association should have adequate reserve funds in the coffer; a costly special assessment could be coming if the funds are insufficient to cover the necessary repairs.
  • Reserve funds. A certain percentage of the monthly fee needs to be allocated for major repairs. The percentage can differ substantially based on the age of the community, but a good rule of thumb is that communities that are less than 10 years old should have 10 percent of their fees set aside. Communities between 10 and 20 years old need 25 to 30 percent, and it only increases from there.
  • Association management. Is the community professionally managed or is it managed by a group of volunteers? It’s always a good idea to review the minutes from the meetings of an association’s board, and it’s always preferable to buy in a community with professional management. This will help ensure that adequate reserve funds are in place, amenities are well-maintained, and issues are handled in a professional, timely manner. 
  • Rules and restrictions. What rules are imposed on the homeowners? If the rules are so strict that they severely limit your ability to use the property, it could be a poor investment. Knowing whether or not you will be able to rent out your unit is essential, even if you are buying the property as a primary residence.
Of particular importance for investors is the question of hiring a property manager. Keeping up with monthly fees is the owner’s responsibility; so is the task of navigating the laws associated with owning rental properties. Working with a property manager can help increase return on investment and alleviate some of the headaches that landlords experience.

For a consultation about the many nuances of investing in a condo or townhome, please send an email to our office at [email protected], or visit www.WilmingtonForRent.com.    

Sweyer Property Management has been providing real estate property management services and long-term rentals to the Wilmington area since 1987. The company continues to be the industry leader with more than 1400+ units and more than 20 employees. Sweyer Property Management has exhibited continuous growth throughout the Wilmington, Leland and Hampstead areas while maintaining a 4.8 Google+ rating for customer service. To inquire about the company’s full-service management services, or to take a tour of houses for rent in the area, email [email protected], or visit WilmingtonForRent.com. You can also Like and follow the Sweyer Property Management Facebook page to get property management tips or see properties for rent.

 

Sweyer animated 300x250 ad
Ico insights

INSIGHTS

SPONSORS' CONTENT
Deedeegasch 10218121741

Holiday Spirits: Four Things Alcohol Permittees Need to Know When Selling Alcohol

Deedee Gasch - Cranfill Sumner & Hartzog LLP
Headshot 1016184145

Recommended Apps

Ryan Skuce - Earney & Company, LLP
Chadwoutersheadshot

Disaster Relief: Employers Helping Employees

Chad Wouters - Earney & Company, LLP

Trending News

Coming Soon To Carolina Beach: Condos, Fork N Cork, Publix

Cece Nunn - Dec 17, 2018

Business Park Proposed For Hampstead Area

Christina Haley O'Neal - Dec 17, 2018

In The Current Issue

KWHCoin Taps Into Blockchain

KWHCoin, a blockchain-based renewable energy company, has plans to install over 50,000 solar energy systems in Sierra Leone in 2019 with hel...


Top Stories No. 1: Hurricane Brings Major Flooding, Damage

2018 Year in Review: Hurricane Florence made landfall near Wrightsville Beach on the morning of Sept. 14 as a Category 1 hurricane, with the...


Top Stories No. 6: Live Oak’s Expansion Continues

2018 Year in Review: A new subsidiary, leadership changes and construction were part of Live Oak Bancshares’ year, marking the company’s con...

Book On Business

The 2018 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

Health Care Heroes 2018
2018 WilmingtonBiz Expo - Keynote Lunch with Eric Dinenberg, Rouse Properties